The structural changes in the paper industry affect machine supplying companies as well. Metso has announced drastic job cuts in order to bring supply and demand back into line.
Finnish machine engineering company Metso is planning drastic job cuts in its paper division. A total of 630 jobs are to be axed at its Finnish facilities in Jyväskylä, Järvenpää, Tampere, Raisio, Juankoski, and Valkeakoski in order to adapt to the structural changes in the European paper industry. Roughly 150 of these jobs will probably be outsourced. The company reported that the negotiations with employee representatives are to begin without delay.
Metso said these streamlining measures were necessary to bring the company’s production capacity in line with the permanent structural changes in the paper industry. The most significant factors here are the continuous reduction in demand from the paper industry, the growing demand for cheaper solutions, and increased competition.
The company said the restructuring measures aim to bring supply into line with the present demand situation and thereby generate annual savings in operating costs to the tune of around €30m. The final number of axed jobs will be determined by the orders position for 2013. The restructuring process is to be completed by the end of the third quarter 2013.
Not only Metso is affected by the changes in the paper industry. The German paper-machine engineering company Voith announced in May 2012 that it intends to cut a total of 710 jobs in the paper segment at its Germany and Austrian facilities in order to adjust to market conditions.
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